Two buys two sales Long term or short term tax gain

I bought 100 shares of company A in August 2016
And then I bought 400 shares of same company in December 2016

I sold 400 shares in February 2017

Now if I sell rest of the 100 shares before December 2017
Then will it be short term or long term tax on these 100 shares

I think 400 shares should be short term
And 100 shares should be long term

But My stock brokers says they will count from last buy date
So it will be considered as short term for all 500 shares if I sell before dec 2017

Please guide
Thanks a lot

The standard practice is FIFO.

See these links

Hope this explains. You may also consult a charted accountant for confirmation.


It is always First In First Out. i.e. shares you bought will be considered sold first. If you don’t want them to be considered as a Short Term transaction then you should sell first 100 shares after August 2017 and next 400 shares only after December 2017.


In this Case both are short term Gain’s.
Dont worry too much on saving tax, sell at right time.
Its first in first out so what you took delivery first is what is being sold first


Thanks Aditya ,sky and Vivek
So my broker is right